Evil or stupid? Canada’s Jerry Del Massier resigned in disgrace just days after becoming Barclays COO. Is he a ‘casino banker’ kingpin—or just collateral damage of his CEO’s ambition?
Introduction
The former Chief Operating Officer of Barclays, Jerry del Massier, is known for being a contentious figure in the banking business. The scandal surrounding the Libor interest rate, which rocked the world of finance in 2012, revolved around him.
Del Massier instructed the traders at Barclays to submit lower Libor rates, which resulted in a fine of £290 million being levied against the bank. As a result of the incident, numerous top officials at Barclays, including the CEO and Chairman of the company, resigned from their positions. Shortly after that, Del Massier handed in his resignation from the bank. In this article, we will investigate the question of whether Jerry Del Massier was foolish or malicious, and we will do it by analyzing his actions.
The Libor Fraud Scheme Scandal
One of the most significant events to occur in the world of finance during the past 10 years was the Libor affair. It included tampering with the London Interbank Offered Rate, also known as Libor, which is the standard interest rate utilized by financial institutions all over the world. The interest rates that are applied to loans and other financial instruments are based, at least in part, on the Libor rate. The scandal involves several significant financial institutions, including the Royal Bank of Scotland, Barclays, and UBS.
For its part in the Libor affair, regulators issued a fine against Barclays £290 million. It was discovered that the bank had manipulated the market by submitting phony Libor rates as part of their scheme. Because he encouraged traders at Barclays to submit lower Libor rates, Jerry Del Massier was at the centre of the affair. During the time of the controversy, Del Massier served as the Chief Operating Officer of the bank, and he was regarded as a pivotal participant in the affair.
The debate over whether or not Del Massier was a malicious or foolish person is a complicated one. On the one hand, he was part of a plot to manipulate the Libor rate, which resulted in severe repercussions for the financial sector as a whole as well as the banking industry specifically. On the other hand, it is possible that he was merely obeying the orders that were given to him by his superiors and that he did not fully grasp the repercussions of his conduct.
Background Del Massier
It is necessary to investigate Del Massier’s past to get a full grasp of the part he played in the Libor controversy. Del Massier got his start in the banking industry at the Toronto Dominion Bank. He was born in Canada. He began his career with Barclays in 1997 and has since risen through the company’s echelons. In 2009, he was given the position of a chief operating officer at the bank, and at the time, the banking industry saw him as a rising star.
Del Massier was regarded as a prominent player in the investment banking sector of Barclays because of his aggressive attitude to business, which earned him a reputation for being one of the most successful bankers in the world. At the time, he was seen as a close associate of Bob Diamond, who was serving as CEO of Barclays. Diamond was recognized as a major figure in the investment banking industry due to his aggressive attitude to business, and he was known for this reputation.
Both Diamond and Del Massier were well-known for their tough management style, and they were seen as significant figures in the culture of aggressive risk-taking that was common in the banking business at the time. Diamond and Del Massier were both successful bankers during this period. This culture was one of the primary contributors to the global financial meltdown that occurred in 2008.
The Libor Scandal Continues to Develop
The investigation into claims of rate-rigging by large banks was one of the first steps taken by regulators in 2011, marking the beginning of the unfolding of the Libor scandal. It was discovered that one of the first banks to be investigated, Barclays, had been manipulating the Libor rates for several years throughout several years.
The investigation uncovered that traders at Barclays had manipulated the market by submitting phoney Libor rates to gain an unfair advantage. The traders had conspired with other banks to rig the rates, and they had done so to generate profits for both themselves and the bank. In addition, they had coordinated with other banks to rig the rates.
When it came to light that Del Missier had given instructions to traders at the bank to submit lower Libor rates, he was brought into the affair as a possible conspirator. Del Missier stated in his defence that he was following orders that he had received from Bob Diamond, who was serving as CEO of Barclays at the time.
Del Massier ‘s Defense
The argument that Del Massier put out in defense of himself was that he had erroneously interpreted the orders that he had received..
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